The following Information is for Hulk Gym's first year of operations. Amounts are in millions of dollars. The enacted tax rate is 25%. Year 2024 $300 Future Amounts Total Accounting income Temporary difference: Prepaid insurance Taxable income (72) $228 2025 $18 Future Taxable Amounts 2026 2027 $18 $18 2028 $18 $72 Required: Prepare a compound Journal entry to record the income tax expense for the year 2024. Note: If no entry is required for a transaction/event, select "No Journal entry required" In the first account fleld. Enter your answers In millions (l.e., 10,000,000 should be entered as 10.)
The following Information is for Hulk Gym's first year of operations. Amounts are in millions of dollars. The enacted tax rate is 25%. Year 2024 $300 Future Amounts Total Accounting income Temporary difference: Prepaid insurance Taxable income (72) $228 2025 $18 Future Taxable Amounts 2026 2027 $18 $18 2028 $18 $72 Required: Prepare a compound Journal entry to record the income tax expense for the year 2024. Note: If no entry is required for a transaction/event, select "No Journal entry required" In the first account fleld. Enter your answers In millions (l.e., 10,000,000 should be entered as 10.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vinubhai
Transcribed Image Text:The following Information is for Hulk Gym's first year of operations. Amounts are in millions of dollars. The enacted tax rate is 25%.
Year
2024
$300
Future Taxable Amounts
2027
Accounting income
Temporary difference:
Prepaid insurance
Taxable income
View transaction list
Journal entry worksheet
1
Record the income taxes.
Note: Enter debits before credits.
(72)
$228
Transaction
1
2025
General Journal
$18
2026
$18
Required:
Prepare a compound Journal entry to record the Income tax expense for the year 2024.
Note: If no entry is required for a transaction/event, select "No Journal entry required" In the first account fleld. Enter your answers
In millions (1.e., 10,000,000 should be entered as 10.)
$18
Debit
2028
$18
Future Amounts
Credit
Total
$72
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